Financial Statements of Parent and Subsidiary Guarantors

12 Months Ended

Apr. 01, 2011

Financial Statements of Parent and Subsidiary Guarantors [Abstract]

Financial Statements of Parent and Subsidiary Guarantors

Note 17 — Financial Statements of Parent and Subsidiary Guarantors

On October 22, 2009, the Company issued $275.0 million in principal amount of Notes in a private placement to institutional buyers. The Notes were exchanged in May 2010 for substantially identical Notes that had been registered with the SEC. The Notes are jointly and severally guaranteed on a full and unconditional basis by each of the Guarantor Subsidiaries, which are 100% owned by the Company. The indenture governing the Notes limits, among other things, the Company’s and its restricted subsidiaries’ ability to: incur, assume or guarantee additional debt; issue redeemable stock and preferred stock; pay dividends, make distributions or redeem or repurchase capital stock; prepay, redeem or repurchase subordinated debt; make loans and investments; grant or incur liens; restrict dividends, loans or asset transfers from restricted subsidiaries; sell or otherwise dispose of assets; enter into transactions with affiliates; reduce the Company’s satellite insurance; and consolidate or merge with, or sell substantially all of their assets to, another person.

The following supplemental financial information sets forth, on a condensed consolidating basis, the balance sheets, statements of operations and statements of cash flows for the Company (as “Issuing Parent Company”), the Guarantor Subsidiaries, the non-guarantor subsidiaries and total consolidated Company and subsidiaries as of April 1, 2011 and April 2, 2010 and for the fiscal years ended April 1, 2011, April 2, 2010 and April 3, 2009.

Condensed Consolidated Balance Sheet as of April 1, 2011

	Issuing				Non-		Consolidation and
	Parent		Guarantor		Guarantor		Elimination
	Company		Subsidiaries		Subsidiaries		Adjustments			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	24,347	$	7,600	$	8,543	$	—		$	40,490
Accounts receivable, net		171,183		10,644		10,062		—			191,889
Inventories		88,542		7,484		2,932		(403	)		98,555
Deferred income taxes		16,428		1,723		162		492			18,805
Prepaid expenses and other current assets		15,236		4,745		1,160		—			21,141
Total current assets		315,736		32,196		22,859		89			370,880
Satellites, net		276,418		256,582		—		—			533,000
Property and equipment, net		122,945		103,410		7,785		(1,001	)		233,139
Other acquired intangible assets, net		6,201		65,341		10,347		—			81,889
Goodwill		63,939		9,686		9,907		—			83,532
Investments in subsidiaries and intercompany receivables		490,288		2,246		404		(492,938	)		—
Other assets		89,834		12,922		552		—			103,308
Total assets	$	1,365,361	$	482,383	$	51,854	$	(493,850	)	$	1,405,748
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	62,465	$	8,164	$	1,083	$	—		$	71,712
Accrued liabilities		100,749		25,691		4,143		—			130,583
Current portion of other long-term debt		116		1,012		—		—			1,128
Total current liabilities		163,330		34,867		5,226		—			203,423
Senior Notes due 2016, net		272,296		—		—		—			272,296
Other long-term debt		60,203		1,743		—		—			61,946
Intercompany payables		14,606		—		11,945		(26,551	)		—
Other liabilities		16,464		4,321		3,057		—			23,842
Total liabilities		526,899		40,931		20,228		(26,551	)		561,507
Equity:
ViaSat, Inc. stockholders’ equity
Total ViaSat, Inc. stockholders’ equity		838,462		441,452		31,626		(471,415	)		840,125
Noncontrolling interest in subsidiary		—		—		—		4,116			4,116
Total equity		838,462		441,452		31,626		(467,299	)		844,241
Total liabilities and equity	$	1,365,361	$	482,383	$	51,854	$	(493,850	)	$	1,405,748

Condensed Consolidated Balance Sheet as of April 2, 2010

							Consolidation
	Issuing				Non-		and
	Parent		Guarantor		Guarantor		Elimination
	Company		Subsidiaries		Subsidiaries		Adjustments			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	66,258	$	16,216	$	7,157	$	—		$	89,631
Accounts receivable, net		160,807		11,983		3,561		—			176,351
Inventories		75,222		6,313		1,427		—			82,962
Deferred income taxes		16,480		866		—		—			17,346
Prepaid expenses and other current assets		25,457		2,504		896		—			28,857
Total current assets		344,224		37,882		13,041		—			395,147
Satellites, net		209,431		286,258		—		—			495,689
Property and equipment, net		66,928		82,679		7,141		(944	)		155,804
Other acquired intangible assets, net		10,872		78,292		225		—			89,389
Goodwill		63,940		9,279		1,805		—			75,024
Investments in subsidiaries and intercompany receivables		596,313		2,324		7,654		(606,291	)		—
Other assets		60,812		21,070		617		—			82,499
Total assets	$	1,352,520	$	517,784	$	30,483	$	(607,235	)	$	1,293,552
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	71,765	$	5,920	$	670	$	—		$	78,355
Accrued liabilities		85,960		14,602		1,689		—			102,251
Total current liabilities		157,725		20,522		2,359		—			180,606
Senior Notes due 2016, net		271,801		—		—		—			271,801
Other long-term debt		60,000		—		—		—			60,000
Intercompany payables		93,468		—		14,505		(107,973	)		—
Other liabilities		16,356		7,990		49		—			24,395
Total liabilities		599,350		28,512		16,913		(107,973	)		536,802
Equity:
ViaSat, Inc. stockholders’ equity
Total ViaSat, Inc. stockholders’ equity		753,170		489,272		13,570		(503,007	)		753,005
Noncontrolling interest in subsidiary		—		—		—		3,745			3,745
Total equity		753,170		489,272		13,570		(499,262	)		756,750
Total liabilities and equity	$	1,352,520	$	517,784	$	30,483	$	(607,235	)	$	1,293,552

Condensed Consolidated Statement of Operations for the Fiscal Year Ended April 1, 2011

	Issuing						Non-			Consolidation and
	Parent			Guarantor			Guarantor			Elimination
	Company			Subsidiaries			Subsidiaries			Adjustments			Consolidated
	(In thousands)
Revenues:
Product revenues	$	505,634		$	5,546		$	16,583		$	(3,825	)	$	523,938
Service revenues		53,701			215,267			10,994			(1,694	)		278,268
Total revenues		559,335			220,813			27,577			(5,519	)		802,206
Operating expenses:
Cost of product revenues		375,635			8,228			9,426			(3,344	)		389,945
Cost of service revenues		34,339			121,024			6,926			(1,666	)		160,623
Selling, general and administrative		104,235			50,946			9,123			(39	)		164,265
Independent research and development		27,807			—			924			(20	)		28,711
Amortization of acquired intangible assets		4,672			12,954			1,783			—			19,409
Income (loss) from operations		12,647			27,661			(605	)		(450	)		39,253
Other income (expense):
Interest income		687			—			9			(373	)		323
Interest expense		(3,103	)		(49	)		(375	)		373			(3,154	)
Income (loss) before income taxes		10,231			27,612			(971	)		(450	)		36,422
Provision (benefit from) for income taxes		(10,188	)		10,325			353			(492	)		(2	)
Equity in net income (loss) of consolidated subsidiaries		15,654			—			—			(15,654	)		—
Net income (loss)		36,073			17,287			(1,324	)		(15,612	)		36,424
Less: Net income (loss) attributable to noncontrolling interest, net of tax		—			—			—			309			309
Net income (loss) attributable to ViaSat, Inc.	$	36,073		$	17,287		$	(1,324	)	$	(15,921	)	$	36,115

Condensed Consolidated Statement of Operations for the Fiscal Year Ended April 2, 2010

	Issuing					Non-			Consolidation and
	Parent			Guarantor		Guarantor			Elimination
	Company			Subsidiaries		Subsidiaries			Adjustments			Consolidated
	(In thousands)
Revenues:
Product revenues	$	581,911		$	907	$	4,065		$	(2,809	)	$	584,074
Service revenues		34,986			62,499		7,010			(489	)		104,006
Total revenues		616,897			63,406		11,075			(3,298	)		688,080
Operating expenses:
Cost of product revenues		405,624			960		3,851			(1,909	)		408,526
Cost of service revenues		23,070			36,937		7,316			(493	)		66,830
Selling, general and administrative		109,931			20,957		2,013			(6	)		132,895
Independent research and development		26,961			2		362			—			27,325
Amortization of acquired intangible assets		5,178			3,778		538			—			9,494
Income (loss) from operations		46,133			772		(3,005	)		(890	)		43,010
Other income (expense):
Interest income		658			3		12			(52	)		621
Interest expense		(7,354	)		—		(52	)		52			(7,354	)
Income (loss) before income taxes		39,437			775		(3,045	)		(890	)		36,277
Provision (benefit from) for income taxes		5,113			308		17			—			5,438
Equity in net income (loss) of consolidated subsidiaries		(2,300	)		—		—			2,300			—
Net income (loss)		32,024			467		(3,062	)		1,410			30,839
Less: Net income (loss) attributable to noncontrolling interest, net of tax		—			—		—			(297	)		(297	)
Net income (loss) attributable to ViaSat, Inc.	$	32,024		$	467	$	(3,062	)	$	1,707		$	31,136

Condensed Consolidated Statement of Operations for the Fiscal Year Ended April 3, 2009

	Issuing					Non-			Consolidation and
	Parent			Guarantor		Guarantor			Elimination
	Company			Subsidiaries		Subsidiaries			Adjustments			Consolidated
	(In thousands)
Revenues:
Product revenues	$	590,403		$	—	$	6,128		$	(1,189	)	$	595,342
Service revenues		27,042			—		6,364			(569	)		32,837
Total revenues		617,445			—		12,492			(1,758	)		628,179
Operating expenses:
Cost of product revenues		420,653			—		5,105			(1,138	)		424,620
Cost of service revenues		18,097			—		4,577			(470	)		22,204
Selling, general and administrative		96,707			—		1,917			—			98,624
Independent research and development		29,311			—		390			(79	)		29,622
Amortization of acquired intangible assets		8,403			—		419			—			8,822
Income (loss) from operations		44,274			—		84			(71	)		44,287
Other income (expense):
Interest income		1,325			—		138			—			1,463
Interest expense		(507	)		—		(2	)		—			(509	)
Income (loss) before income taxes		45,092			—		220			(71	)		45,241
Provision (benefit from) for income taxes		6,791			—		3			—			6,794
Equity in net income (loss) of consolidated subsidiaries		100			—		—			(100	)		—
Net income (loss)		38,401			—		217			(171	)		38,447
Less: Net income (loss) attributable to noncontrolling interest, net of tax		—			—		—			116			116
Net income (loss) attributable to ViaSat, Inc.	$	38,401		$	—	$	217		$	(287	)	$	38,331

Condensed Consolidated Statement of Cash Flows for the Fiscal Year Ended April 1, 2011

										Consolidation
	Issuing						Non-			and
	Parent			Guarantor			Guarantor			Elimination
	Company			Subsidiaries			Subsidiaries			Adjustments			Consolidated
							(In thousands)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	57,877		$	112,029		$	(19	)	$	(270	)	$	169,617
Cash flows from investing activities:
Purchase of property, equipment and satellites, net		(152,416	)		(54,126	)		(2,013	)		270			(208,285	)
Cash paid for patents, licenses and other assets		(15,942	)		—			(44	)		—			(15,986	)
Payments related to acquisition of businesses, net of cash acquired		(14,203	)		—			747			—			(13,456	)
Investment in subsidiaries		(726	)		100			1,731			(1,105	)		—
Net cash (used in) provided by investing activities		(183,287	)		(54,026	)		421			(835	)		(237,727	)
Cash flows from financing activities:
Proceeds from line of credit borrowings		40,000			—			—			—			40,000
Payments on line of credit		(40,000	)		—			—			—			(40,000	)
Payment of debt issuance costs		(2,775	)		—			—			—			(2,775	)
Proceeds from issuance of common stock under equity plans		26,398			—			—			—			26,398
Purchase of common stock in treasury		(5,880	)		—			—			—			(5,880	)
Incremental tax benefits from stock-based compensation		867			—			—			—			867
Intercompany long-term financing		64,889			(66,619	)		625			1,105			—
Net cash provided by (used in) financing activities		83,499			(66,619	)		625			1,105			18,610
Effect of exchange rate changes on cash		—			—			359			—			359
Net (decrease) increase in cash and cash equivalents		(41,911	)		(8,616	)		1,386			—			(49,141	)
Cash and cash equivalents at beginning of fiscal year		66,258			16,216			7,157			—			89,631
Cash and cash equivalents at end of fiscal year	$	24,347		$	7,600		$	8,543		$	—		$	40,490

Condensed Consolidated Statement of Cash Flows for the Fiscal Year Ended April 2, 2010

										Consolidation
	Issuing						Non-			and
	Parent			Guarantor			Guarantor			Elimination
	Company			Subsidiaries			Subsidiaries			Adjustments			Consolidated
	(In thousands)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	74,032		$	40,671		$	(1,238	)	$	(919	)	$	112,546
Cash flows from investing activities:
Purchase of property, equipment and satellites, net		(121,497	)		(10,075	)		(3,890	)		919			(134,543	)
Cash paid for patents, licenses and other assets		(13,709	)		—			(87	)		—			(13,796	)
Payments related to acquisition of businesses, net of cash acquired		(442,700	)		64,336			377			—			(377,987	)
Change in restricted cash, net		(31	)		7,329			—			—			7,298
Investment in subsidiariess		(5,114	)		—			691			4,423			—
Net cash (used in) provided by investing activities		(583,051	)		61,590			(2,909	)		5,342			(519,028	)
Cash flows from financing activities:
Proceeds from line of credit borrowings		263,000			—			—			—			263,000
Payments on line of credit		(203,000	)		—			—			—			(203,000	)
Proceeds from issuance of long-term debt, net of discount		271,582			—			—			—			271,582
Payment of debt issuance costs		(12,781	)		—			—			—			(12,781	)
Proceeds from issuance of common stock under equity plans		23,085			—			—			—			23,085
Proceeds from common stock issued under public offering, net of issuance costs		100,533			—			—			—			100,533
Purchase of common stock in treasury		(10,326	)		—			—			—			(10,326	)
Intercompany long-term financing		85,354			(86,045	)		5,114			(4,423	)		—
Net cash provided by (used in) financing activities		517,447			(86,045	)		5,114			(4,423	)		432,093
Effect of exchange rate changes on cash		—			—			529			—			529
Net increase in cash and cash equivalents		8,428			16,216			1,496			—			26,140
Cash and cash equivalents at beginning of fiscal year		57,830			—			5,661			—			63,491
Cash and cash equivalents at end of fiscal year	$	66,258		$	16,216		$	7,157		$	—		$	89,631

Condensed Consolidated Statement of Cash Flows for the Fiscal Year Ended April 3, 2009

	Issuing					Non-			Consolidation and
	Parent			Guarantor		Guarantor			Elimination
	Company			Subsidiaries		Subsidiaries			Adjustments			Consolidated
	(In thousands)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	64,376		$	—	$	(2,363	)	$	(71	)	$	61,942
Cash flows from investing activities:
Purchase of property, equipment and satellites, net		(115,976	)		—		(1,289	)		71			(117,194	)
Cash paid for patents, licenses and other assets		(7,921	)		—		(107	)		—			(8,028	)
Payments related to acquisition of businesses, net of cash acquired		(925	)		—		—			—			(925	)
Investment in subsidiaries		(3,267	)		—		(768	)		4,035			—
Net cash used in investing activities		(128,089	)		—		(2,164	)		4,106			(126,147	)
Cash flows from financing activities:
Proceeds from line of credit borrowings		10,000			—		—			—			10,000
Payments on line of credit		(10,000	)		—		—			—			(10,000	)
Proceeds from issuance of common stock under equity plans		6,742			—		—			—			6,742
Purchase of common stock in treasury		(667	)		—		—			—			(667	)
Incremental tax benefits from stock-based compensation		346			—		—			—			346
Payment on secured borrowing		(4,720	)		—		—			—			(4,720	)
Proceeds from sale of stock of majority-owned subsidiary		—			—		3,371			(1,871	)		1,500
Intercompany long-term financing		767			—		1,397			(2,164	)		—
Net cash provided by financing activities		2,468			—		4,768			(4,035	)		3,201
Effect of exchange rate changes on cash		—			—		(681	)		—			(681	)
Net decrease in cash and cash equivalents		(61,245	)		—		(440	)		—			(61,685	)
Cash and cash equivalents at beginning of fiscal year		119,075			—		6,101			—			125,176
Cash and cash equivalents at end of fiscal year	$	57,830		$	—	$	5,661		$	—		$	63,491